Answer to Question #193722 in Management for Millicent

Question

1.3 Explain the key success factors for Shoprite and how they can maintain the market share.

Answer 1

Key success factors for Shoprite

Fundamentally, Shoprite has been identified as the greatest food retailer in Africa. The company is said to be operating in approximately 2,892 stores in fourteen countries in Africa (Lourenço, 2018). Shoprite has majorly contributed in creating job opportunities across different parts of the African continent since it has employed over 140,000 people to work in the company (Lourenço, 2018). According to history, this company has been experiencing great success through its management and its growth has been evident from the lower to the middle market of income. Shoprite has managed to experience the high levels of growth through its saving strategies and the implementation of a consolidate method of the distribution of their goods.

The key factor that has led to the success of Shoprite is the good relationship that has been established between the company and its suppliers. In the past year, the company has managed to attain a gross profit of about R16bn which was found from selling a valued merchandise of about R68bn that was gotten from the suppliers (Femi, 2019). As a way of maintaining its market share,  Shoprite has a plan of expanding its territories as a way of bringing more profit to its suppliers. The company has planned to open more stores across the content to build on 189 supermarkets that are said to be operating in the continent (Femi, 2019).

In addition to that, there are other factors that have contributed to the success of Shoprite are the management of the company which plays a major role in insuring the strategic focus which ensure  that as the company maintains its objective of making profits. On the other hand, the company ensures that there is innovation and teamwork amongst the members as a way of improving its operations. In order to maintain the market share, the company is working hard on ensuring that they have good relationships with their customers and also through involving their employees in different innovation strategies (Marais, 2016).

 

References

Lourenço, F. (2018). Shoprite holdings LTD (Doctoral dissertation). <span style="font-size:12.0pt;line-height:200%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;; background:white">https://run.unl.pt/bitstream/10362/49539/1/Lourenco_2018.pdf</span>

Aderemi, B. D., Olonade, O. Y., & Femi, A. F. (2019). Megamalls as site for social interaction: A case study of Shoprite and Ventura, Ibadan, Nigeria. <span style="font-size:12.0pt;line-height:200%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;; background:white">https://www.researchgate.net/profile/Olawale_Olonade2/publication/336605263_Megamalls_as_site_for_social_interaction_A_case_study_of_Shoprite_and_Ventura_Ibadan_Nigeria/links/5da83e2fa6fdccdad54babc0/Megamalls-as-site-for-social-interaction-A-case-study-of-Shoprite-and-Ventura-Ibadan-Nigeria.pdf</span>

Marais, E. J. (2016). Expanding the contours of the constitutional property concept: Shoprite Checkers (Pty) Ltd v MEC for Economic Development, Eastern Cape 2015 6 SA 125 (CC). Journal of South African Law/Tydskrif vir die Suid-Afrikaanse Reg, 2016(3), 576-592. <span style="font-size:12.0pt;line-height:200%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;; background:white">https://journals.co.za/doi/abs/10.10520/EJC-616bfe770</span>